(LEAD) Asiana shareholders approve merger with Korean Air

On August 12, Asiana Airlines Inc.'s shareholders approved the merger with larger rival Korean Air Co., finalizing a six-year acquisition process, according to Yonhap news agency. During an extraordinary shareholders meeting, an overwhelming majority of shareholders voted in favor of the deal between the national flag carrier. In November 2020, Korean Air announced plans to acquire Asiana for a deal valued at 1.8 trillion won (US$1.6 billion), aiming to create the world's 10th-largest airline by fleet size.

Asiana Chief Executive Officer (CEO) Song Bo-young addressed reporters following the meeting, stating that the merged entity will be the first step in reshaping South Korea's aviation industry. Regarding the integration of the two airlines' mileage programs, Song mentioned that preparations are underway and await regulatory approval from the Fair Trade Commission.

Later, Korean Air's board of directors also approved the merger with Asiana. The two airlines signed a merger agreement in May, and the merged company, to be named Korean Air, is set to launch on December 17. The transport ministry had approved the merger the following month, provided Korean Air ensures aviation safety and passenger convenience. In addition, the Asiana Airlines brand will be discontinued.